Offline vs Online Payment Processing – Most of the money transfer is done via online payment methods now. But everybody remembers the good old days when every transaction was done using the cash money or other valuable items. Surely, many people use cash money and offline payment, widely.
There are certain advantages and disadvantages to both of the payment methods. We will discuss the difference between both in detail. For more information, feel free to contact Merchant Strongholdanytime and get details related to Offline vs Online Payment Processing.
The difference between Offline and Online Payment Methods?
Most of us clearly understand the difference between the two payment methods that we have. As simple as it sounds, the offline method uses cash money or other valuable items to make a payment/transaction. On the other hand, the online method does not involve any physical money while making a payment.
But the thing is that many of us do not know how these payment methods are different in terms of advantages and disadvantages. In the next section of the article “Offline vs Online Payment Processing”, we will discuss a detailed difference between both.
Advantages of Offline Payment Processing
There is a reason why most people around the globe still prefer to use cash for their daily money transactions. Some advantages of the offline method of payment are given below:
- The offline transactions are transparent. This means both the lender and receiver are sure about the transaction at the moment of the deal.
- Being a traditional method of payment makes it more trusted. People still trust the bank checks and drafts and use them for payments.
- The offline mode of payment is direct and does not depend on any other source. For example Internet or payment gateways.
- Easy to use and understand. Many people face difficulty with the online mode of payment.
Advantages of Online Payment Processing
In the war of Offline vs Online Payment Processing, the online method is winning so far. This is due to some advantages of this mode of payment.
- The online method is quick and easy. You can transfer a big chunk of money with just a swipe of your finger.
- You have therecord of all the payments. This helps in reducing the payment frauds.
- Speaking of fraud, the online methods are safer as the onlinepayment gatewaytakes the responsibility of the money during the transactions.
- You can make atransactionin any part of the world without facing the issue of currency difference.
- Worldwide acceptance and 24*7 availability.
Customer Satisfaction
There are many people who do not carry a large amount of cash anymore. Also, they prefer card mode of payment when it comes to expenditure. Coming back to themerchant, they need to equip their business with the tools to accept such payments. Amerchantaccountprovides such services.
- Amerchantalso provides the tools to accept various kinds of card payments.
- If you have an online platform to make business then you can also add payment buttons to the website for the customer.
- This provides flexibility to the customer, as they have theoptionto choose from multiple modes of payment.
No Fake Currency or Bad Check Hassle
In the case of cash or checktransaction, themerchantis always worried whether the money offered is genuine or not. Sometimes, these little frauds can lead to a great loss for themerchant.
- By using the cashlesstransaction, themerchantcan avoid cases of fake currency and bounced checks.
- Amerchantaccountalso offers payment modes for therecurringtransactionof products and services.
Documents required to get a Merchant Account:
Personal Documents:Driving License and Personal Bank Statements for the recent 3 months
Business Documents:Article of Incorporation, Business Bank Statements for the recent 3 months, Processing Statements for the recent 3 months, Bank Letter or Void check, EIN - IRS, and a few supporting documents based on the business type.
